Question

Preparation of Balance Sheet Ari Company's December 31 post-closing trial balance contains the following normal balances: Cash $19,000 Accounts payable 20,000 Building 439,500 Long-term notes payable 785,000 Common stock 950,000 Retained earnings 75,000 Accumulated depreciation Equipment 180,000 Land 877,000 Accounts receivable 22,500 Accumulated depreciation-Building 135,000 Wages payable 6,000 Patent (net of amortization) 120,000 Notes payable (short term) 131,000 Inventory 206,000 Equipment 600,000 Allowance for doubtful accounts 2,000 Required Prepare a December 31 classified balance sheet for Ari Company.

Answer 1

As per classified balance sheet all account show under the separate titles and in vertical form.

Air Company’s

Balance Sheet as on 31^st December

Assets
Current Assets
Cash		$ 19,000
Account receivable	$ 22,500
Allowance for doubtful account	($ 2,000)	$ 20,500
Inventory		$ 206,000
Total current Assets		$ 245,500
Non- Current Assets
Building	$ 439,500
Accumulated depreciation	( $ 135,000)	$304,500
Equipment	$ 600,000
Accumulated depreciation	( $ 180,000)	$ 420,000
Land		$ 877,000
Total Noncurrent assets		$ 1,601,500
Other Assets
Patents		$120,000
Total other Assets		$120,000
Total Assets		$ 1,967,000
Liabilities
Current Liabilities
Accounts payable		$ 20,000
Wages payable		$ 6,000
Notes payable		$ 131,000
Total current liabilities		$ 157,000
Non Current Liabilities
Long terms notes payable		$ 785,000
Total Non Current Liabilities		$ 785,000
Share holders Equity
Common Stock		$ 950,000
Retained earnings		$ 75,000
Total Shareholders’ Equity		$1,025,000
Total Liability and Equity		$ 1,967,000